DOMESTIC AIRLINES GROUNDED;LOW PUBLIC CONFIDENCE

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 001934 SIPDIS STATE PASS FAA FOR ACONLEY, TRANSPORTATION FOR FAA; DAKAR PLEASE PASS TO FAA REP ED JONES; ROME PLEASE PASS TO TSA REP JOHN HALINSKI E.O. 12958: DECL: 12/20/2015 TAGS: EAIR EINV PREL NI SUBJECT: DOMESTIC AIRLINES GROUNDED;LOW PUBLIC CONFIDENCE IN AVIATION SECTOR REF: ABUJA 2447 Classified By: Consul General Brian L. Browne for reasons 1.4 (B) and (D). ¶1. (U) Summary. In a vote of no confidence in the domestic aviation sector, many would-be air travelers seem to be opting for road transportation following recent air mishaps. After the December 19 emergency landing of a Bellview flight in Accra, the GON temporarily suspended Bellview's operating license. Travelers still willing to fly also seem to be much more discriminating in their selection of air carriers. Many have restricted themselves to a few airlines and these companies are having problems coping with the sudden surge in demand while the others are now hurting for customers during what should be a busy holiday period. End Summary. -------------- -------------- GON Grounds Bellview Air; After Crash-Landing in Accra -------------- -------------- ¶2. (SBU) Local press reported the GON's grounding of Bellview Airlines following an emergency landing in Accra, Ghana on December 19, when the plane's landing gear failed. A Bellview representative, Habib Mohammed, said a more serious mishap was averted because the pilot put personnel at Accra's Kotoko International Airport on alert before landing. No passenger was physically hurt and most continued on their journey hours later, after the airline provided another aircraft. Nigerian Airspace Management Agency (NAMA) Managing Director Roland Iyayi said Bellview would not be allowed to fly until further inspections, but predicted the airline would be running by week's end. ¶3. (U) When the GON announced that Bellview Airlines had been grounded, passengers holding Bellview tickets were left stranded at the Lagos Airport. Particularly affected were Bellview passengers transiting Lagos from West African countries like Gabon and Gambia on their way to Port Harcourt, Kano and other destinations. The grounding of Bellview comes barely a week after President Obasanjo grounded Sosoliso and Chachangi airlines. It also comes on the heel of the grounding of all Boeing 737-100, 200, and 200C aircraft flying the Nigerian airspace, by a presidential task force on airworthiness (reftel). -------------- 
Fear Grips as Travelers Take to the Roads -------------- ¶4. (SBU) Expectedly, recent air mishaps have taken their toll on the traveling public; many are now opting to travel by road. -------------- Others Carefully Choose Which Airlines to Fly -------------- ¶5. (U) For those still willing to fly, the choice of airline has become more critical. Travel operators in Lagos have noted a significant increase in customer demand for Virgin Nigeria (VN) and Aero Contractors (AERO) tickets. According to staff of Transcap Travels in Lagos, demand for the once popular Bellview Airlines has significantly waned. Similarly in Abuja, it has been difficult for passengers to obtain seats on VN and AERO, as demand for these airlines have increased significantly. -------------- Airlines of Choice Can't Meet Demand -------------- ¶6. (U) In response to the increased demand, AERO representatives told Embassy Abuja it would increase its Abuja-Port Harcourt flights. AERO currently travels this route once daily. (Note: More AERO flights to Port Harcourt would be expedient to the oil sector since the oil majors and most oil service companies have offices and facilities in and around that city. Sosoliso Airlines had three flights daily between Abuja and Port Harcourt before it was grounded. End Note.) ¶7. (C) Not only has VN demand gone up, but VN operations have been stretched due to the company's own logistical challenges and its limited inventory of aircraft. A VN official told us an aircraft had to be "pulled" for urgent repairs in Frankfurt to avert any mishap. He claims the airline and the aircraft's engine manufactures; GE, did not want to take chances once a problem was identified. VN should clear up its backlog of passengers before the end of the week, he said. ¶8. (U) Meanwhile, reports transmitted by the Nigerian Television Authority (NTA) showed VN passengers loitering around the Lagos Murtala Muhammed International Airport (MMIA) with little information being given to them about reasons for the cancellations and when they would be airlifted. -------------- The Past Returning to Haunt the Future -------------- ¶9. (U) In a December 20 press conference, Aviation Minister Babalola Borishade emphasized the need for modernizing air traffic control equipment, upgrading infrastructure, and tightening procedures for Air Transport Licenses (ATL's) and Air Operating Permits (AOP's). He blamed the recent air mishaps on the policies and the inaction of his predecessors. He vowed that Nigeria would work overtime to meet ICAO standards by September 2006. He said that the GON's Safe Tower Project expected to be launched January 2006 would target upgrading air traffic control and communication facilities at the five international airports by August 2006. -------------- Comment -------------- ¶10. (C) In general, a Nigerian's air safety expectations are much lower than that of the average American. However, the recent plane crashes has caused apprehension even among Nigeria's relatively hardy flying public. Whatever confidence they had in domestic aviation has evaporated considerably. Fewer people are traveling and they are more circumspect in their choice of carriers. VN and AERO are the immediate beneficiaries. The other airlines, many of them already cash-strapped, are now suffering an additional pinch as former customers avoid them. Both the winners and losers in this shift of demand will have their unique challenges. ¶11. (C) However, the person with perhaps the stiffest challenge is Aviation Minister Borishade. Confidence in his ministry is near rock bottom and the migration of travelers away from air travel will only complicate matters. To improve air safety and restore confidence, he has a lot of work to do, not much expertise under his belt, and perhaps not a lot of time to show some visible degree of improvement. End Comment. BROWNE